Human Capital Management (HCM) Technology Industry Overview

  • The second quarter of 2018 featured 26 M&A transactions in the HCM technology space—the most in a quarter in recent memory. Notable deals included Recruit’s purchase of Glassdoor, Workday’s pending acquisition of Adaptive Insights, PeopleFluent’s sale to Learning Technologies Group, the pending merger between HireRight and GIS, and the pending acquisition of Conduent’s HR consulting and actuarial business by HIG Capital.
  • The tight labor market is driving strong demand for HCM technology solutions. In particular, employers are prioritizing talent acquisition and management tools that increase connectivity with contingent workers and help identify internal and known talent, as well as learning management systems. In terms of workforce management, employers are focused on productivity and collaboration enhancers, automated risk management and compliance tools, and vertical-specific platforms.

Harris Williams & Co. Market Analysis: Global Health and Wellness

Key Strategic Acquirers of HCM Technology Assets by Volume

  • The key strategic acquirers have combined for 33 HCM technology related acquisitions since 2015, but three of them (IBM, Oracle and Ultimate) have not completed a HCM acquisition since 2016
  • Key acquirers announced or completed three transactions in Q2: Workday / Adaptive Insights, SAP / Coresystems, and Workday / Rallyteam

# of transactions

Global HCM Technology M&A Activity

  • HCM M&A experienced another breakout quarter with 26 transactions, setting the record for quarterly activity in recent times
  • HCM technology companies remain highly attractive to both strategic and financial acquirers
  • Deal volume is robust supported by tuck in acquisitions and platform building

# of transactions

 

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